Employee Recognition Statistics Leaders Must Know

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Employee Recognition: A Few Statistics

How effective has employee recognition been in the last few years? Here are a few statistics that will help you to get an idea.

1. According to experts, employee disengagement at the workplace may directly result from a lack of recognition or flawed recognition. As per a survey conducted across HR experts, 91% of them agree that rewards and recognition work favorably to improve employee retention.
2. inkedIn conducted a study based on its profile data some time back. According to that, people who were recognized with a promotion remained with the same company for at least three more years.
3. Based on results from a survey conducted by Harvard Business Review, 72% of businesses agree that their employee recognition program has affected employee engagement levels positively.
4. Cash awards still seem like a good choice for recognizing employees. About 57% of employees prefer cash awards over other forms of employee recognition ideas.
5. Here is a fact that may surprise you. Globally, only 22% of managers say that they have the right tools to understand how to recognize their employees! That means 78% of managers need to evaluate and recognize their employees with insufficient tools/data in hand.
6. On a positive note, employees are apparently receiving the right recognition whenever they are making an extra effort. A global engagement report states that 84% of employees who went the extra mile in the workplace were rightly recognized.
7. Want to retain your best performers? Recognize them regularly based on their excellent work. Statistics say that employees who are recognized and routinely acknowledged for their good work are five times more likely to stay with the employer.
8. Employee recognition programs that are designed right can lead to an 11.1% increase in employee performance.

New Year and New Trends for Employee Recognition

Though the pandemic is not yet over, 2022 brings us hope of a COVID-free world, where businesses are starting to function normally, and employees are getting back to normal work modes. However, even after the pandemic subsides completely, experts believe that most organizations will choose hybrid work modes and virtual business processes, forcing the HR fraternity to rethink their recognition practices.

Based on what industry leaders say, here are some of the new trends and employee recognition ideas that might work this year.

Digital recognition solutions

Many organizations have already moved their recognition practices, at least a part of them, to the digital mode. Others are now in a place where this change is more of a compulsion than a choice. Digital recognition solution is one trend that is going to pick up pace and continue to grow over the years.

In fact, you can check out our latest blog on digitizing your employee recognition system.

Gamification

You may be surprised, but gamification is a popular employee recognition strategy right now. A large part of the workforce in younger companies consists of millennials and Gen Z employees, and they are relating to gamified recognition ideas better. In this model, elements like badges, avatars, reward points, and leader boards are designed around recognition.

One of Possibleworks’ oft-chosen recognition models is gamification. If you think your employees will love such a fun recognition platform,  get in touch with us right away.

Recognition that emotionally connects

In the wake of the pandemic, people are witnessing shifts in their priorities. Emotional bonding and wellness have become more important than money. So, your employee recognition ideas need to connect emotionally as well.

Personalized recognition

Just like how customers and clients are offered customized experiences, suggestions, and interactions, your employees will also need to be recognized with individual focus on the kind of people they are.  

How Much Does It Cost to Hire a New Employee and How Much is It Worth?

In 2016, LinkedIn published an article that stated the average cost of hiring an Indian employee across most sectors to be ₹25,500/hire. This figure depended on several factors, including:

• Salaries for recruitment team, job consultants
• Advertisement and job portal charges
• Reimbursements, if any, relocation charges, and referral bonuses
• Background checks and other documentation costs

There is no doubt that this figure must have increased in the last five years. According to Deloitte, it takes about $4000 on average for them to hire a new employee.

Hence It is clear that a higher attrition rate will cause an excessive financial crunch to employers in India and everywhere else in the world.

When compared to hiring, the cost of ideating and implementing the right employee recognition programs is minimal. Hence, organizations must recognize your employees, to retain their employees.

Tips for Employee Recognition

Here are some practical employee recognition ideas that can make a difference to how your employee feels.

Invest in your employee’s financial stability

While it is easy to argue that money isn’t everything, it is undoubtedly significant, as statistics say that about 57% of employees prefer cash rewards as a part of their recognition program. Therefore, help your employees become financially stable  as much as your budget allows you to. Many times, help may not necessarily be financial but in terms of creating awareness about sound financial planning.

Encourage managers to recognize freely and openly

Sometimes, all it takes for employees to feel great is a heartfelt email from the manager or a pat on the back for a job well done. When managers start recognizing and acknowledging efforts genuinely, it makes a great difference. What’s the upside? It doesn’t cost you anything!

Consider SMART recognition

Smart-Meaningful-Authentic-Regular-Timely Recognition? This is not a novel idea, but the approach’s effectiveness has been consistent throughout the years.

Does your recognition program satisfy all the above criteria? Think about it and make relevant changes.

Make peer recognition a norm

Apart from managers recognizing employees, employees can recognize one another for the good work done. Peer recognition is a great way to build a healthy and holistic culture in the workplace. You can invest in peer-recognition tools from PossibleWorks to make this process easy, hassle-free, and efficient.

Our processes offer a simple platform where endorsements can be given out quickly, and people can be recognized for even minor achievements.

Check out what our experts have to say about peer-to-peer recognition.

How to Put a Plan Together for Employee Recognition

How can you create an effective employee recognition program? While the steps vary depending on the intent and type of organization, here is a generic list of steps you can consider while putting together an employee recognition program.

1. Have an objective in mind. This will include what you intend to gain with the program, your budget, timelines, and proposed changes.
2. Have a team that works on creating the program exclusively. This will help the process move at the pace you like.
3. Define metrics. Note the current and proposed/required employee turnover rate, engagement rate, productivity levels, experience scores, and other factors that recognition may affect.
4. Invest in internal surveys. Understand from your employees the state of your current recognition system and find out what can be improved.
5. Create awareness. Show your employees the kind of efforts that go into creating such programs.
6. Get the help you need. Hire third-party service providers if required. People who know the forte well can create a program that’s tailor-made for your needs.
7. Talk with the stakeholders every step of the way and get their input.
8. Once you implement new changes, ensure the program is monitored regularly, at least for the first few months.
9. Identify tools that can generate reports about the usage, effectiveness, and results of these employee recognition ideas.
10. Constantly encourage managers and employees to use the recognition tool until they get used to it.

Conclusion

An employee’s recognition should include monetary awards, respect, growth opportunities, and appreciation in equal measures. There will be many changes in employee recognition programs once the pandemic is over, and such changes will be here to stay. Therefore, you need to be at the top of your game to identify the right trends, invest in the right tools, and keep your employees engaged and motivated with smart recognition ideas.